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Posted 2nd June 2010 at 08:36 PM by nezvest Comments 0
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[QUOTE=migiets;71795]Accrual based accounting allows you to do that. That is what the Banks have been doing for loans. In accrual based accounting, you Debit Interest Receivable and Credit Income (P&L). When the customer comes to pay, you then debit the customer and credit Interest Receivable to reverse the entry that was suspended there. When the customer does not pay, the bank is supposed to classify the loan to 'Nonaccrual' so that the accrued interest does not go to P&L but they do not...